platforms must be built before a new yard will return a profit. Advance 

 money spent on the above simply gives the sponsor an advantage over his 

 competitors when a platform is finally ordered. Though the sponsor may 

 invest up to $1 million in preliminary work, this is only a fraction of 

 the price of a completed steel-fabrication yard, which may cost from $20 

 •to $40 million, or of a large deepwater platform fabrication yard, which 

 cah exceed $100 million. Long transport distances weigh in favor of a 

 new yard, but the high capital costs of a new yard tend to favor 

 fabrication at existing yards. 



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